BAFT Master Trade Loan Agreement (MTLA)

Trade loans are a key source of liquidity for global financial institutions to provide financing for their clients’ import and export trading activities.

In the past, terminology, loan structures and supporting documentation varied across banks and geographies. Standardization and consistency of trade loan documentation helps improve the industry dialogue between borrowers, lenders, investors and regulators.

The BAFT Trade Finance Documentation Working Group developed the BAFT MTLA, a bank to bank master trade loan agreement under English law and New York law in 2014, with the assistance of outside counsel to provide clear, concise and consistent language for usage by the industry.

Encouraging adoption of a master standardized document improves protection, simplifies the process and efficiency of borrowing and lending globally.

BAFT is assisting its membership by posting and updating regularly a list of the countries in which master bank to bank trade loans have been signed to encourage industry transparency between borrowers and lenders globally.